What Price Loyalty? – Industry Trend or Event

What Price Loyalty? – Industry Trend or Event – Brief Article

Sonya Donaldson

If you build it, they will come? According to a recent Jupiter Communications report, when it comes to building a customer base, that’s not necessarily true: The survey of 1,200 online customers shows that so-called royalty programs don’t always engender consumer loyalty.

Although 75 percent of online consumers participate in them, only 22 percent say loyalty programs inspire increased online purchases. By contrast, 40 percent cited easy returns, 37 percent cited good customer service, and 37 percent named product selection as their reasons for returning to a site.

It all comes down to value, says Jupiter senior analyst Melissa Shore. Whether it’s customer service, ease of navigation and purchasing, or product selection and availability, customers return to a site that offers something they value.

According to Shore, vendors can increase loyalty by first understanding their customers, then using that knowledge to improve service and product offerings–not by striving for return visits, or “sticky sites.”

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